MARKET WRAP: Sensex ends 155 pts lower; SBI down 4% post Q1 results

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Benchmark indices ended lower on Friday, after touching record highs for four straight sessions, following global market trends. Metals, pharma and PSU banks were the top draggers during the day.

The S&P BSE Sensex ended the day at 37,869 down 155 while the Nifty50 index settled at 11,429 down 41 points

SBI Q1 Results

SBI slipped 4% after it reported a bigger-than-expected quarterly loss on Friday, as the country's biggest lender by assets made higher provisions for treasury losses. SBI's third consecutive quarterly net loss came in at Rs 48.76 billion ($707.28 million) for the three months to June 30, compared with a profit of Rs 20.06 billion a year ago, and a record loss of Rs 77.18 billion in the March quarter. Gross NPA stood at 10.69% vs 10.91% QoQ while provisions were at Rs 192.28 billion vs Rs 280.96 billion QoQ

Jet Airways slips

Shares of Jet Airways hit a three-year low of Rs 262, down 10% on the BSE on Friday in early morning trade after the company deferred announcing their June quarter numbers to an unspecified date. On the National Stock Exchange (NSE), the stock hit a low of Rs 258, and is trading at its lowest level since June 16, 2015 READ MORE

Global Markets

Asian stock markets fell on Friday while currency markets were whipsawed by a searing selloff in Russia’s rouble after the United States slapped on new sanctions.

Washington said it would impose fresh sanctions because it had determined that Moscow had used a nerve agent against a former Russian agent and his daughter in Britain, which the Kremlin denies.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent. Japan’s Nikkei stock index fell 0.5 per cent despite data showing that the country’s economy expanded at a faster-than-expected annualized rate of 1.9 per cent in the second quarter in a sign of improving momentum.

(With Reuters inputs)

3:50 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

The Indian benchmark indices ended Friday’s session with losses tracking weak global cues. The Nifty Index ended lower by 0.4% to close at 11,430 levels. The broader markets underperformed the benchmark with BSE Midcap and BSE Smallcap ending the day with losses of 0.9% each. On the sectoral front, Consumer Durables, Autos and IT were the outperformers ending in green, whereas Metals, Capital Goods and Banking were the top losers. Amongst the global markets, both Asian and European Indices traded on a weak note.

With headline index trading at record highs, some consolidation cannot be ruled out. Key macro data (WPI & CPI) scheduled next week would be keenly watched by the investors. We expect stock specific volatility to continue with more corporate earnings scheduled in the next 1-2 weeks. Further, market participants would keep an eye on global developments especially the US-China trade war, progress of monsoon, currency and crude oil price movement

3:41 PM

PSU Banks slip over 3% as SBI falls post Q1 results

3:36 PM

Sectoral Trend

3:35 PM

Top Sensex gainers and losers

3:32 PM

Markets at close

The S&P BSE Sensex ended the day at 37,869 down 155 while the Nifty50 index settled at 11,429 down 41 points

3:18 PM

Top 52-week losers

COMPANY	PRICE()	52 WK LOW	CHG()	CHG(%)
CAN FIN HOMES	320.65	318.45	-5.60	-1.72
JET AIRWAYS	276.50	261.60	-25.20	-8.35
REDINGTON INDIA	102.00	101.80	-1.55	-1.50
S H KELKAR & CO.	195.00	193.05	-6.85	-3.39

3:04 PM

Reliance Securities on HeidelbergCement

 

Rating: Buy 

Target Price: Rs 210

 

HCIL has consistently been increasing its premium cement sales volume, which accounted for 11% of total sales volume in 1QFY19. As premium cement commands Rs8-10/bag higher than standard cement, further improvement in premium cement sales is expected to aid its profitability. While capacity constraint seems to the key hurdle for HCIL as of now to get re-rated, we are hopeful it to get addressed in ensuing months.

 

Looking ahead, we expect visible de-leveraging of balance-sheet (repaid ECB of Rs750mn in 1QFY19) and healthy operating efficiencies are expected to result in improvement in return ratios. We maintain our fundamental BUY recommendation on the stock with a Target Price of Rs210

 

2:55 PM

M&M, Berger Paints, Bata India, Exide Industries hit new highs

 

Shares of Mahindra & Mahindra (M&M), Berger Paints India, Bata India and Exide Industries were among eight companies from the S&P BSE500 index hit their respective new highs on the BSE in otherwise range-bound market.

 

Indiabulls Ventures, Graphite India, Nestle India and Sanofi India, too, touched record highs today. READ MORE

2:41 PM

Are mutual funds now less inclined to be activists?

 

Swraj Paul’s sweeping moves to snap up shares in Indian companies and move to ‘clean them up’ are seen by some to be one of the rare occasions that promoters had reason to fear their shareholders in India. This happened in the 1980s.

 

More than three decades later, large institutional players seem less willing to rock the boat. READ MORE

2:24 PM

SBI Q1 results

 

Corporate slippage at Rs 37.01 billion vs Rs 290.37 cr billion

Domestic NIM at 2.95% vs 2.67% QoQ

Wholebank NIM at 2.8% vs 2.5% QoQ

2:18 PM

SBI Q1 Results 

Fresh slippages at Rs 99.85 billion

2:15 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,991.18	-33.19	-0.09
S&P BSE SENSEX 50	11,993.36	-13.64	-0.11
S&P BSE SENSEX Next 50	33,966.20	-92.15	-0.27
S&P BSE 100	11,732.10	-16.20	-0.14
S&P BSE Bharat 22 Index	3,651.51	+2.81	+0.08

2:14 PM

SBI Q1 Results

 

Gross NPA at 10.69% vs 10.91% QoQ 

Provisions at Rs 192.28 billion vs Rs 280.96 billion QoQ

Recognised entire MTM losses of Rs 58.90 billion in Q1

2:13 PM

Earnings Impact

2:12 PM

SBI Q1 Results

Net interest income at Rs 217.98 billion in Q1